Military contractors found guilty of fraud

Jury says bribery and money laundering part of scheme

A federal jury today (March 4) found two persons and one company guilty of conspiracy to commit wire fraud, bribery, and money laundering in connection with military contracting. Found guilty were Robert Ehnow, president of Poway's L&N Industrial Tool & Supply; Joanne Loehr, owner of Poway's Centerline Industrial, and Centerline itself. According to the U.S. Attorney's office, evidence showed that the defense contractors supplied cash, checks, TV sets, expensive bicycles, and personal benefits to Navy officials. In return, the contractors got millions of dollars in government orders. Also, fraudulent invoices were submitted to the Department of Defense. L&N filed for Chapter 7 (liquidation) bankruptcy in 2011 but Centerline remains in business. In total, eleven defendants have been convicted in the scheme.

Comments

I wonder if these guys supplied all the new dual clothes dryers that were to go into the new barracks at Pendelton, that were never use, and hundreds sold still crated at auction
( all because they were too large to fit in the space built to hold them ??

Murphyjunk: I am sure that this fraud would not have extended to clothes dryers for new barracks. These cases were direct bribes to Navy employees in exchange for contracts. The incident you describe sounds more like incompetence than corruption, although there may be more under the surface. Best, Don Bauder

tomjohnston: As previously reported, most of those bribed have been convicted. Of the eight convicted before the three written about here, five were Navy officials. Also sales managers and owners of San Diego contractors were convicted earlier. Best, Don Bauder

THREE PENDLETON CONTRACTORS PLEAD GUILTY TO STEALING $3 MILLION OF MEDICAL EQUIPMENT. Three Camp Pendleton civilian contractors pleaded guilty today (March 7) to stealing medical equipment that the military had planned to ship overseas to treat wounded Marines. According to the indictment, Henry Bonilla, Richard Navarro, and Michael Tuisee worked in 1st Medical Logistics Company warehouses. They pleaded guilty to participating in a conspiracy to steal equipment such as ultrasound machines, ventilators, and laryngoscopes.